Study On The Impact Of Controlling Shareholder’s Allocation Of Control Rights On Capital Structure Adjustment

Capital structure decision is the core part of corporate financial decision,and enterprise value is closely related to it.However,our capital structure of listed company exists too high or too low phenomenon,the structure of leverage ratio is unreasonable,which causes the unsteady macro-economic movement.An excessively high capital structure will make the company face the risk of bankruptcy,while an excessively low capital structure means that the company lacks working capital and makes insufficient use of debts.Thus,too high or too low capital structure is not conducive to the development of enterprises.Therefore,the adjustment of capital structure is the key to keep our economy moving smoothly.Corporate governance is one of the main factors affecting the dynamic adjustment of capital structure,and the allocation of right of control is the core of corporate governance.Different allocation of right of control of enterprises will produce different constraints and supervision effects,which will affect the behavior of shareholders,directors and managers,and then affect the adjustment of capital structure.It can be seen that the allocation of control rights is the key factor affecting the dynamic adjustment of capital structure.This paper takes the allocation of control right of controlling shareholders as the research entry point,divides it into two dimensions of control degree and check degree,and makes an indepth study on the speed,effect and mode of capital structure adjustment.This paper takes Ashare listed companies from 2011 to 2020 as the research object.Firstly,the target capital structure is fitted with the systematic GMM method,and the relationship between the allocation of control rights of controlling shareholders and the adjustment speed is studied,and the moderating effect of growth opportunities on the relationship is studied.Secondly,this paper further tests the relationship between the allocation of control rights of controlling shareholders and the adjustment effect.Finally,this paper divides the adjustment methods into four types:increasing liabilities,reducing liabilities,cash dividend and issuing stocks,and tests the relationship between the allocation of control rights of controlling shareholders and the adjustment methods.The research of this paper shows that:(1)the stronger the degree of control of controlling shareholders,the slower the speed of upward adjustment of capital structure,the faster the speed of downward adjustment;The stronger the degree of checks and balances on controlling shareholders,the faster the upward adjustment speed,the slower the downward adjustment speed.(2)High growth will inhibit the negative effect of controlling shareholder’s control degree on the upward adjustment speed of capital structure,and promote the positive effect of controlling shareholder’s check degree on the upward adjustment speed.(3)The degree of control of controlling shareholders has a negative impact on the upward adjustment effect of capital structure,and a positive impact on the downward adjustment effect;The balance degree of controlling shareholders has a positive effect on the upward adjustment effect of capital structure and a negative effect on the downward adjustment effect.(4)In the case of insufficient liabilities,the stronger the controlling shareholder’s control degree is,the more likely the enterprise is to upgrade its capital structure by means of cash dividend and the less likely it is to upgrade its capital structure by means of increasing liabilities;On the contrary,the stronger the degree of checks and balances on controlling shareholders,the more likely the enterprise is to upgrade its capital structure by increasing liabilities,and the less likely it is to upgrade its capital structure by cash dividend.